Look... the fact is he is correct in an important sense. AAA game development costs are just too high to sustain a flop, or even a modest success. It has to sell in the 10s of millions to justify the cost of development; and when you factor piracy into account you're left with a situation where studios are constantly facing near-bankruptcy while being quite successful in their own rights. And people won't put up with less than AAA production standards either; every new game has to be bigger in every way than the one that came before.